BHP and Anglo American have finally ended weeks of tense negotiation talks
BHP’s bids have been called “unattractive” by Anglo American, who has said that they expose its shareholders to undue risk and uncertainty.
BHP and Anglo American have finally ended weeks of tense negotiation talks, with BHP recently pulling out of the takeover deal after three rejected bid proposals.
Anglo American, which refused to further extend the deadline for BHP to come back with a revised fourth proposal, left BHP with little choice under British law but to withdraw and not offer again for at least six months.
Some of BHP’s conditions for the takeover included Anglo American needing to divest its businesses in South Africa, such as Anglo American Platinum and Kumba Iron Ore. The requirements had already faced major backlash from both the South African government, which has a significant stake in Anglo American, and the company itself.
https://imasdk.googleapis.com/js/core/bridge3.647.0_en.html#goog_1693575979 https://imasdk.googleapis.com/js/core/bridge3.647.0_en.html#goog_1693575980 https://imasdk.googleapis.com/js/core/bridge3.647.0_en.html#goog_1693575981 BHP not enthusiastic about bid
Although BHP did try to come back with a revised proposal promising to appease South African politicians and investors, as well as project staff at Anglo American’s Johannesburg office, this was clearly not enough.
Previously, Anglo American had highlighted that BHP’s offers were “unattractive” for its shareholders and exposed them to higher levels of risk.
Following BHP’s withdrawal, Anglo said in a statement: “On 28 May 2024, BHP put forward a limited number of socioeconomic measures that were confined in scope, impact and duration and that BHP stated would support regulatory approvals.
“This approach does not sufficiently address the fact that Anglo American’s shareholders would bear disproportionate execution and value risks and uncertainty over an extended period, nor does it consider that material conditions would likely be imposed in relation to both Anglo American Platinum and Kumba which would require the approval of their respective boards.”
